Should a small business accept credit cards?
A small business should definitely accept credit cards! When a small business accept credit cards, they are jumping on the bandwagon with all of the other businesses, both large and small, that offer up the utmost convenience and security to their customers. Credit cards are faster and more reliable than cash. There’s no loose change to hold on to, no counterfeit bills to worry about, and theft is a minimal risk, because you only have to call up your card issuer and have the card canceled, and any charges reversed. So when you ask, “Should a small business accept credit cards?”, the answer is definitely yes!
Can a small business accept credit cards?
Yes! A small business is not necessarily the mom and pop grocery store on the corner of your neighborhood’s busiest street. By definition, a small business is one that is independently owned and operated, and one that is not dominant in the field of its operation. That small corner store could be owned by a company that plants one every two to three miles! Any small business can accept credit cards. Small business accept credit cards via the use of merchant accounts, many times a specialized merchant account that is set up with the costs and profits of a small business in mind.
How does a small business accept credit cards?
A small business accept credit cards by the use of a merchant account. A merchant account is a special account set up between a business (in this case, a small business) and a sponsoring bank or financial institution. In exchange for a monthly fee (which goes to cover maintenance and support) and per-transaction fees of 1%-2%, the sponsoring bank or financial institution agrees to enable the business to accept credit cards as a payment method. The merchant account that enables a small business accept credit cards is secure, flexible, and easy to use!
How can my small business accept credit cards?
In order for your small business to accept credit cards, you will need to apply for a merchant account. Like detailed above, a merchant account is a special account that is set up between the small business and a financial institution. Using the merchant account, a small business can accept credit cards. It is taken care of with a small piece of credit card processing equipment, which is usually provided by the merchant account provider. The credit card is simply swiped through the machine (or its information is keyed in, in the event that the credit card is damaged or not present), and the machine connects to the merchant account using a phone line or internet connection, the card is verified, the funds are deducted, and then transferred to the small business banking account at a later date.